Richard Bove, an analyst at Rochdale Securities LLC in Lutz, Florida, talks with Bloomberg's Susan Li about JPMorgan Chase & Co.'s financial results, and the outlook for the U.S. banking industry. JPMorgan said a "broad-based" economic recovery boosted first-quarter earnings 55 percent, surprising analysts with record fixed-income trading revenue and a better-than-expected outlook for consumer credit.
Bove is a bullish towards JPMorgan as well as towards many other stocks. As a matter of fact, he calls the US Bank stocks “terrific”.
His compared the current period of time with that of 1991 to 1999 when banking industry grew their earning from about $20 billion to $110 billion and bank stock grew 6-700%.
He cited that currently the banks are earning about only 20 billion pre-tax, depressed by a $180 billion loan loss provision. With a economic recovery, the loss provision should drop to about $30 billion, the historical norm. So he is looking at the banks reach about $200 billion pre-tax profit in 5 years.
The current financial regulation talks will impact the banks business negatively. But even if the banks do nothing, just waiting for the loan loss to come down, they still warrant much higher stock prices, so thinks Dick Bove.
He thinks the bank stocks will outperform the general market in the next couple of years.
(Source: Bloomberg)
Bove is a bullish towards JPMorgan as well as towards many other stocks. As a matter of fact, he calls the US Bank stocks “terrific”.
His compared the current period of time with that of 1991 to 1999 when banking industry grew their earning from about $20 billion to $110 billion and bank stock grew 6-700%.
He cited that currently the banks are earning about only 20 billion pre-tax, depressed by a $180 billion loan loss provision. With a economic recovery, the loss provision should drop to about $30 billion, the historical norm. So he is looking at the banks reach about $200 billion pre-tax profit in 5 years.
The current financial regulation talks will impact the banks business negatively. But even if the banks do nothing, just waiting for the loan loss to come down, they still warrant much higher stock prices, so thinks Dick Bove.
He thinks the bank stocks will outperform the general market in the next couple of years.
(Source: Bloomberg)
